Biz Break: Tesla soars amid surge in Model S sales, 'recall' dust-up

Tesla Vice President for World Wide Sales and Service Jerome Guillen introduces the P85 all electric car and its charging station at the North American International Auto Show on January 14, 2014 in Detroit.
(STAN HONDA/AFP/Getty Images)

Speaking at the North American International Auto Show in Detroit, Tesla executive Jerome Guillen said Tesla sold 6,900 Model S sedans in the final three months of 2013, 900 more than the company projected in its most recent quarterly report and more than 25 percent higher than the 5,500 cars Tesla sold in the third quarter. Guillen also said that the electric car maker intends to start producing its next offering -- the Model X SUV -- this year while doubling the number of showrooms and service centers it has in the United States.

"Tesla sales in the fourth quarter of 2013 were the highest in company history by a significant margin," the company said in a corresponding news release.

"Tesla remains several years ahead of competitors in battery technology and continues to make progress in ramping production and margin improvement," Kallo wrote, later adding, "We think demand for the Model S will remain strong throughout 2014."

"The word 'recall' needs to be recalled," Musk said in a tweet Tuesday, as Tesla's corporate Twitter account echoed similar sentiments.

"It doesn't make sense to call it a recall in this situation, it's an over-the-air update," Musk said later in an interview with CNBC. "It's just not a word that makes sense in the 21st century for the Model S."

The NHTSA is currently investigating a pair of fires involving Tesla's Model S, in which metal road debris punctured the underside of the drivers' electric cars, eventually causing the batteries to catch fire and engulf the cars in flames. Musk has vociferously defended the cars against any accusations that they are prone to fires, and Tuesday's news release again noted that "Tesla remains the only manufacturer with a perfect safety record of zero deaths or serious, permanent injuries ever."

And the widely watched Standard & Poor's 500 index: Up 19.68, or 1.08 percent, to 1,838.88

Check in weekday afternoons for the 60-Second Business Break, a summary of news from Mercury News staff writers, The Associated Press, Bloomberg News and other wire services. Contact Jeremy C. Owens at 408-920-5876; follow him at Twitter.com/jowens510.